NEFESH HATORAH
TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023
The trustees present their annual report and financial statements for the year ended 31 December 2023.
The financial statements have been prepared in accordance with the accounting policies set out in note to the financial statements and comply with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).
Objectives and activities
The principal objectives of the charity are to promote and advance the Jewish religion and Jewish ethics by the running of prayer groups on a regular basis, to arrange and provide for the holding of meetings, lectures and exhibitions for information and advancement of the Jewish religion and to promote the education of children and adolescents in Jewish religion and ethics.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
Achievements and performance
The principal activities during the period were the running of a synagogue, including Jewish social religious events for the members of the synagogue.
Financial review
The synagogue's finances are managed by a dedicated treasurer who is duly overseen by the trustees. During the year under review, as set out on the Statement of Financial Activities, the charity received income of £83,979 with £72,358 being expended in accordance with the objects of the charity.
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
Structure, governance and management
The charity is a company limited by guarantee.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
D Sandground
Dr D Spitzer S Portnoy
The day to day administration of the charity is carried on by a five person committee comprising five members of the synagogue.
The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
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NEFESH HATORAH
TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
The trustees' report was approved by the Board of Trustees.
D Sandground Trustee
23 January 2024
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Charity registration number 1162153
Company registration number CE003548 (England and Wales)
NEFESH HATORAH
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
NEFESH HATORAH
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees D Sandground Dr D Spitzer S Portnoy Charity number 1162153 Company number CE003548 Independent examiner Alexander & Co (Accountancy) Ltd 7 Murray Crescsent Pinner HA5 3QF
NEFESH HATORAH
CONTENTS
| Page | |
|---|---|
| Trustees' report | |
| Independent examiner's report | |
| Statement of financial activities | 1 |
| Balance sheet | 2 |
| Notes to the financial statements | 3 - 7 |
NEFESH HATORAH
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
| Unrestricted | Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2023 | 2022 | ||
| Notes | £ | £ | |
| Income from: | |||
| Donations and legacies | 3 | 79,456 | 58,543 |
| Expenditure on: | |||
| Charitable activities | 4 | 72,358 | 65,764 |
| Net income/(expenditure) for the year/ | |||
| Net movement in funds | 7,098 | (7,221) | |
| Fund balances at 1 January 2023 | 20,236 | 27,457 | |
| Fund balances at 31 December 2023 | 27,334 | 20,236 |
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
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NEFESH HATORAH
BALANCE SHEET
AS AT 31 DECEMBER 2023
| Notes Fixed assets Tangible assets 8 Current assets Debtors 9 Cash at bank and in hand Creditors: amounts falling due within one year 10 Net current assets Total assets less current liabilities Income funds Unrestricted funds |
2023 £ 5,824 17,148 22,972 - |
£ 4,362 22,972 27,334 27,334 27,334 |
2022 £ 9,488 3,419 12,907 (36) |
£ 7,365 12,871 |
|---|---|---|---|---|
| 20,236 | ||||
| 20,236 | ||||
| 20,236 |
The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2023.
The director acknowledges her responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the Trustees on 23 January 2024
D Sandground Trustee
Company registration number CE003548
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NEFESH HATORAH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
1 Accounting policies
Charity information
Nefesh HaTorah is a private company limited by guarantee incorporated in England and Wales. The registered office is Mowbray House, 58-70 Edgware Way, Edgware, Middlesex, HA8 8DJ.
1.1 Accounting convention
The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
1.4 Income
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
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NEFESH HATORAH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
1 Accounting policies
(Continued)
1.5 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
1.6 Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements over the period of the lease: 5 years Fixtures and fittings 20% straight line basis
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
1.7 Impairment of fixed assets
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
1.8 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9 Financial instruments
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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NEFESH HATORAH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
1 Accounting policies
(Continued)
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
1.10 Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
2 Critical accounting estimates and judgements
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3 Donations and legacies
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2023 | 2022 | |
| £ | £ | |
| Donations and gifts | 39,892 | 35,075 |
| Grants received | 10,000 | - |
| Membership fees | 27,864 | 23,468 |
| Donated goods and services | 150 | - |
| Other | 1,550 | - |
| 79,456 | 58,543 |
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NEFESH HATORAH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
4 Charitable activities
| Charitable | Charitable |
|
|---|---|---|
| Expenditure | Expenditure | |
| 2023 | 2022 | |
| £ | £ | |
| Depreciation and impairment | 5,158 | 4,006 |
| Donations made | 2,162 | 3,454 |
| Establishment costs | 24,957 | 24,868 |
| Repairs and maintenance | 1,712 | 1,022 |
| Utilities | 1,005 | 997 |
| General expenses | 240 | 314 |
| Cleaning | 1,692 | 1,733 |
| Event costs | 13,905 | 9,713 |
| Consultancy | 13,450 | 15,070 |
| Computer expenses | 290 | 392 |
| Burial fees | 6,690 | 3,881 |
| Printing | - | 50 |
| Accountancy | 347 | 264 |
| Legal and professional fees | 750 | - |
| 72,358 | 65,764 | |
| 72,358 | 65,764 |
5 Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
6 Employees
The average monthly number of employees during the year was:
| 2023 | 2022 | |
|---|---|---|
| Number | Number | |
| Total | - | - |
There were no employees whose annual remuneration was more than £60,000.
7 Taxation
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
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NEFESH HATORAH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
| 8 Tangible fixed assets Leasehold improvements Fixtures and fittings £ £ Cost At 1 January 2023 19,110 6,071 Additions - 3,104 At 31 December 2023 19,110 9,175 Depreciation and impairment At 1 January 2023 12,265 5,550 Depreciation charged in the year 3,822 2,286 At 31 December 2023 16,087 7,836 Carrying amount At 31 December 2023 3,023 1,339 At 31 December 2022 6,845 520 9 Debtors 2023 Amounts falling due within one year: £ Trade debtors 2,290 Other debtors 3,534 5,824 10 Creditors: amounts falling due within one year 2023 £ Other creditors - 11 Related party transactions |
Total £ 25,181 3,104 |
|---|---|
| 28,285 | |
| 17,815 6,108 |
|
| 23,923 | |
| 4,362 | |
| 7,365 | |
| 2022 £ 2,413 7,075 |
|
| 9,488 | |
| 2022 £ 36 |
|
There were no disclosable related party transactions during the year (2022 - none).
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CHARITY COMMISSION FOR ENGLAND AND WALES Independent examiner's report on the accounts Section A Independent Examine s Report Report to the trusteesldlrectorsl members of On accounts for the year ended 3,IiilioL3 Charlty no.: 1161lS Cornpany no.: Set out on pages I report to the charity trustees on my examination of the accounts of the Company for the year ended Respon3ibilltles and bas18 of report As Ihe charity's trustees of the Company (who are also the directors of the company for the purposes of company law). you are responsible foT the preparation of the accounts in accordance with the requirements of the Companies Act 2006 {Ihe 2006 Ad"). Having satisfied myself that the a¢counls of the Company are not required to be audited for this year under Part 16 of the 2W6 Act and are eligible for indepèndent examination. I report in respect of my examination of your charity's ac¢ounts as carried out under section 145 of the Charities Act 2011 ("the 2011 Act'l. In carying out my examination, I have followed the Directions given by the Chanty Commission (under section 14515llbl of the 2011 Act. Independent examinerfs statement tThe coofvany's•oss i und minatio meex by being fie se cabl appli I have compleled my examination. I confirm that no material matters have come lo my attention (other than that disdosed below '} which gives Me cause lo believe that.. * accounting records were not kept in accordance wrth section 386 of the Companies Act 20C6'. or Ihe accounts do not accord with such records., or . the accounts do not cornply with relevanl accounting requirements under section 396 of the Companies Act 2006 other than any requirement that the accounts give a 'true and fair, view which is not a matter considered as part of an independent examination.. or .the accounls have not been prepared in accordance with the Charities SORP (FRS102}. IER October 2018
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order lo enable a proper understanding of the accounts to be reached. . Please delete the wonys in the brackets il they not 8ppIy. Slgned: Date: (Gli Name: SIA Relevant professlonal qualification{s) or body lif any): Addreu: ( RES(£M* i4ilg k4 SectSon B Disclosure Only complete rf the examiner needs to highlight material matters of con¢em (see CC32. Independent examination of chanty ac¢ounts'. directions and guidance for examiners). Glve here brlef detall• of any Items that the exaffllner wlshes to dlscloso. IER October 2018